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Shares of Mahindra & Mahindra Ltd (M&M) rose 3 per cent to hit a new high of Rs 1,610.50 on the BSE in Friday’s intra-day trade amid rising expectations of strong sales in the festive season.
In the past two trading days, the stock of the automobile company has surged 5 per cent after the Road Transport Minister Nitin Gadkari clarified that no proposal to impose an additional 10 per cent GST on the sale of diesel vehicles was being considered.
The stock has surpassed its previous high of Rs 1,604.55 touched on September 1, 2023. With today’s gains, the market capitalisation of M&M has touched Rs 2 trillion-mark intra-day.
At 02:44 PM: the stock was quoting 2.5 per cent higher at Rs 1,604.80, with a market cap of Rs 199,562 crore, the BSE data shows.
M&M’s monthly sales for SUVs stood at 37,270 vehicles for August 2023, making it the month with the highest number of SUVs sold in the domestic market. Including exports, the car manufacturer sold a total of 38,164 vehicles. Together (domestic and export) sales marked a 26 per cent growth compared to the same period last year.
Meanwhile, the mid to long-term outlook for the Indian tractor industry is positive. Several initiatives taken by the government are driving higher rural incomes.
This includes higher diversification towards high value crops and agriculture accelerator fund to promote technological advancement in agriculture, etc.
In addition, increase in allocation of government budgets on infrastructure and rural development is likely to benefit commercial demand.
Along with a strong order book in the SUV segment and leading position in the domestic tractor segment, M&M is now gradually introducing its global portfolio to expand its addressable market, according to Sharekhan.
While M&M has acquired a 3.5 per cent stake in RBL Bank as part of its long-term strategy related to its financial business (Mahindra Finance), it maintains its commitment for a disciplined capital allocation and maintain its policy of not to invest in non-core areas in normal situations.
In the past two trading days, the stock of the automobile company has surged 5 per cent after the Road Transport Minister Nitin Gadkari clarified that no proposal to impose an additional 10 per cent GST on the sale of diesel vehicles was being considered.
The stock has surpassed its previous high of Rs 1,604.55 touched on September 1, 2023. With today’s gains, the market capitalisation of M&M has touched Rs 2 trillion-mark intra-day.
At 02:44 PM: the stock was quoting 2.5 per cent higher at Rs 1,604.80, with a market cap of Rs 199,562 crore, the BSE data shows.
M&M’s monthly sales for SUVs stood at 37,270 vehicles for August 2023, making it the month with the highest number of SUVs sold in the domestic market. Including exports, the car manufacturer sold a total of 38,164 vehicles. Together (domestic and export) sales marked a 26 per cent growth compared to the same period last year.
Meanwhile, the mid to long-term outlook for the Indian tractor industry is positive. Several initiatives taken by the government are driving higher rural incomes.
This includes higher diversification towards high value crops and agriculture accelerator fund to promote technological advancement in agriculture, etc.
In addition, increase in allocation of government budgets on infrastructure and rural development is likely to benefit commercial demand.
Along with a strong order book in the SUV segment and leading position in the domestic tractor segment, M&M is now gradually introducing its global portfolio to expand its addressable market, according to Sharekhan.
While M&M has acquired a 3.5 per cent stake in RBL Bank as part of its long-term strategy related to its financial business (Mahindra Finance), it maintains its commitment for a disciplined capital allocation and maintain its policy of not to invest in non-core areas in normal situations.
M&M is consistently focusing on improvement in its operating profitability. Its EV projects are on track. Historically M&M’s operating performance has largely depended on the tractor segment; however, Sharekhan believes the auto segment is expected to drive its operating performance in the coming years due to increasing volumes going ahead.
It maintained a buy rating on the stock due to a healthy robust order book in the PV segment, market leadership in the tractor segment, opportunity to grow in the farm machinery segment, and its road map to play in the EV space.
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